German robotics and automation sector continues to weaken

"The sales trend in the robotics and automation industry signals a need for action," says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. "The downward trend is not based solely on cyclical fluctuations in demand, but now has very tangible structural causes: These include, for example, excessive dependence of the robotics and automation industry on the German automotive industry. Added to this are weaknesses in competitiveness, which business and politics must address with consistent reforms."

Incoming orders collapse

German robotics and automation are losing competitiveness. © VDMA

The economic and structural weaknesses in incoming orders were not only evident in Germany in 2024, with a drop of 16% compared to the previous year. Growth impetus from abroad also failed to materialize: Demand shrank by 2%. The only bright spot for German robotics and automation was exports to the eurozone: incoming orders from eurozone countries rose by an impressive 44% in 2024. In contrast, foreign demand excluding the eurozone countries was 13% down on the previous year.

Reforms required

"Companies in the German robotics and automation industry must focus on their own competitiveness," says Dr. Dietmar Ley. "The priority is to increase the pace of innovation. We also need to be more agile in order to react more quickly to customer demand and set ourselves apart from competitors from abroad. Finally, we also need to bring costs down to a competitive level."

Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation © Michaela Plambeck

A resolute reform agenda is also needed from politicians, Dr. Ley demands: "We can no longer afford locational disadvantages such as excessive regulation and excessive costs in international competition. The economy in Germany needs reliable framework conditions that support growth and do not slow it down," he emphasizes. Then robotics and automation could shine again. Because: "All long-term growth trends for our industry of the future are still intact. We must now set the right course," emphasizes the VDMA trade association chairman.